Silicon Motion Technology (SIMO) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Silicon Motion Technology $52.95, price $281, upside -81.1%, quality 67 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Structural break:
The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
Stretched ValuationStrong overvaluation with only moderate quality.
!Fair value $52.95 · Strongly overvalued (−81.1%)
✓Quality 67/100
!Weak Growth(revenue 5y +10.4 %/yr)
✓Solidly profitable · 16.0% net margin (TTM)
✓Low debt · generates free cash flow
!0.7% dividend yield · Token dividend
✓Ranks above peers(8/11)
!Moderate moat63/100
!Evidence only low, so the estimate is less certain
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69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 30, 2026.
How to read this chart
60‑month range $37.89 – $336.90 · fair‑value band $25.76 – $87.71 · the $280.50 price screens above the $52.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 30, 2026.
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Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea, the United States, and internationally.
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Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices and related devices in China, Japan, Singapore, Taiwan, Korea, the United States, and internationally. It offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in enterprise and hyperscale data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. The company markets its controllers under the SMI brand; and single-chip SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. It markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. Silicon Motion Technology Corporation was founded in 1995 and is based in Hong Kong, Hong Kong.
Stock analysis
Silicon Motion Technology (SIMO) currently trades at $280.50, while our model-based Fair Value estimate is $52.95, 81.1% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $96.67 per share, and 0 of the 25 models we run sit above the $280.50 price.
Bear case: the Growth DCF group reads lowest at $11.03, and 25 of the 25 models stay below the price. Evidence for this calculation is low.
Scenario range: $25.76 (bear) to $87.71 (bull), the price of $280.50 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Silicon Motion Technology reported revenue of $886M in FY2025 versus $922M in FY2021, a compound −1.0%/yr. Reported net income was $123M in FY2025, compounding −11.5%/yr from FY2021.
Key figures
Market cap $11.4B · P/E ratio 55.5 · P/S ratio 7.70 · EPS (TTM) $5.05 · Dividend yield 0.7% · Net margin 13.9% · Return on equity 20.3% · Return on assets (EBIT) 13.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 252% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −41% fair-value upside, at −81%, SIMO screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($10.85 to $139.41). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear $25.76Fair Value $52.95Bull $87.71
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($2.31 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+10.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.4%
Start year 2020 (pandemic). Over 10 years: +9.4% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+29.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+28.9%
Dividend (yield on the price)0.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.45.0% vs 23.8%, picking up
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16% → 11%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+73.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+19.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +69.6% a year for the price and +17.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (87 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductors · 326 stocks
Beats the industry median on 7/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score67 · Above median
Fair Value upside−80.8% · Bottom 25%
Profitability
Return on equity (TTM)20.3% · Top 25%
Return on assets7.4% · Top 25%
Net margin (TTM)16.0% · Above median
Operating margin (TTM)15.3% · Above median
Growth and dividend
Revenue growth105.5% · Top 25%
Dividend yield (TTM)0.7% · Below median
Valuation Multiplesvs Semiconductors median · lower = cheaper
P/E (TTM)55.5× · Pricier than median
PEG0.70× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 88
PAST (return on equity)81· sector 30
HEALTH (low debt)100· sector 95
DIVIDEND (yield)15· sector 19
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Silicon Motion Technology (SIMO) overvalued or undervalued?
As of Sep 30, 2026, our model estimates a fair value of $52.95 versus a price of $280.50, about −81% upside (overvalued).
What is the fair value of SIMO?
Our model-based fair value for Silicon Motion Technology is $52.95 (as of Sep 30, 2026), built from audited fundamentals. The current price: $280.50.
What is the quality score of SIMO?
Silicon Motion Technology has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Silicon Motion Technology (SIMO)?
Our model-based price target is the fair value of $52.95 (as of Sep 30, 2026) from 25 valuation models. Cautious scenario $25.76, optimistic scenario $87.71. It is a calculation from audited fundamentals, not an analyst target.
What is the Silicon Motion Technology stock forecast for 2026?
Our models put fair value at $52.95, about −81% upside versus a price of $280.50 (overvalued). Cautious scenario $25.76, optimistic scenario $87.71. The calculation is refreshed regularly with new filings.
What is the revenue of Silicon Motion Technology (SIMO)?
Silicon Motion Technology reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Sep 30, 2026).
Does Silicon Motion Technology pay a dividend?
Silicon Motion Technology currently shows a dividend yield of about 0.71% relative to its recent price (as of Sep 30, 2026).
What growth is priced into Silicon Motion Technology (SIMO)?
For today's price to be fair in a discounted-cash-flow model, Silicon Motion Technology would have to grow free cash flow by +73.6 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.4 % per year. As of Sep 30, 2026.
What discount rate (WACC) does the fair value of SIMO use?
Our models discount Silicon Motion Technology at 10.9 %: a base by market capitalisation (large), damped by beta 1.73, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Silicon Motion Technology that is +73.6 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Silicon Motion Technology (SIMO) delivered so far?
Over the past 5 years revenue at Silicon Motion Technology grew +10.4 % a year. The price currently implies +73.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Silicon Motion Technology (SIMO) growing?
The median revenue growth in the sector is +10.0 % a year. That is the yardstick for the growth priced into Silicon Motion Technology (+73.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Silicon Motion Technology (SIMO)?
The free-cash-flow yield on the price is 0.27 %: that much free cash flow Silicon Motion Technology produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Silicon Motion Technology (SIMO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Silicon Motion Technology it is $52.95 per share (as of Sep 30, 2026), against a price of $280.50. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Silicon Motion Technology stock overvalued or undervalued in 2026?
As of Sep 30, 2026, SIMO trades above its calculated fair value: price $280.50, fair value $52.95, a gap of about −81% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SIMO?
No. The price is what the market pays today ($280.50); the fair value is what the company's own numbers justify ($52.95). For Silicon Motion Technology the two are $227.55 per share apart. That gap is exactly why we show both numbers side by side.
How much is Silicon Motion Technology worth?
The market values Silicon Motion Technology at about $11.4B (market capitalisation, as of Sep 30, 2026). Per share that is $280.50; our models calculate a fair value of $52.95 per share.
What do the bullish and bearish scenarios say about SIMO?
Our models span a range for Silicon Motion Technology: cautious scenario $25.76, base $52.95, optimistic $87.71 per share (as of Sep 30, 2026, price $280.50). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SIMO?
Silicon Motion Technology trades at a price-to-earnings ratio of 55.5 (as of Sep 30, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $52.95 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 28.3 (reported for FY2025: 19.2). Other multiples: PEG 0.7.
What is the PEG ratio of SIMO?
The PEG ratio of Silicon Motion Technology is 0.70 (P/E divided by earnings growth, as of Sep 30, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Silicon Motion Technology (SIMO)?
Balance-sheet figures for Silicon Motion Technology (as of Sep 30, 2026): return on equity 20.3%. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is SIMO from its 52-week high?
Silicon Motion Technology trades at $280.50, about 17% below its 52-week high of $336.90 and 252% above the low of $79.69 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $52.95 is for.
Which stocks are comparable to Silicon Motion Technology?
From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, Micron Technology, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Silicon Motion Technology stock attractive at the current price?
The data as of Sep 30, 2026: price $280.50, calculated fair value $52.95 (−81%), Quality Score 67/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SIMO calculated?
We run Silicon Motion Technology through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $52.95, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Silicon Motion Technology itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Silicon Motion Technology (SIMO)?
The closing price on Oct 2, 2026 was $280.50. Our model-based fair value is $52.95, about −81% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Silicon Motion Technology right now?
The price sits above even our optimistic bull case ($87.71). The favourable scenario is already priced in. The model range is unusually wide ($25.76 to $87.71). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Silicon Motion Technology (SIMO) come from?
Earnings per share at Silicon Motion Technology grew +6.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.5 %, EBIT margin −9.1 %, tax rate +1.1 %, residual (interest, one-offs) +3.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Silicon Motion Technology
How large is the market capitalisation of Silicon Motion Technology (SIMO)?
The market capitalisation of Silicon Motion Technology is $11.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Silicon Motion Technology (SIMO)?
The price-to-sales ratio of Silicon Motion Technology is 7.70 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Silicon Motion Technology (SIMO)?
Earnings per share at Silicon Motion Technology are $5.05 (price ÷ EPS = P/E 55.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Silicon Motion Technology (SIMO)?
The dividend yield of Silicon Motion Technology is 0.7% (payout 58.4%, on adjusted earnings, reported 39.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Silicon Motion Technology (SIMO)?
The net margin of Silicon Motion Technology is 13.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Silicon Motion Technology (SIMO)?
The return on equity (ROE) of Silicon Motion Technology is 20.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Silicon Motion Technology (SIMO)?
On an EBIT basis the return on assets of Silicon Motion Technology is 13.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Silicon Motion Technology (SIMO)?
The operating margin of Silicon Motion Technology is 15.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Silicon Motion Technology (SIMO)?
Revenue at Silicon Motion Technology is growing +106% versus a year earlier (3y avg −2.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Silicon Motion Technology (SIMO)?
Earnings per share at Silicon Motion Technology are growing +239% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Silicon Motion Technology (SIMO) hold?
Silicon Motion Technology holds more cash than debt, $202M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Thin data
Sep 30, 2026